OUE gunning for more asset enhancement strategies by 2016

ORP's retail podium underway.

According to Maybank Kim Eng, OUE is continuing with a series of asset enhancements. One Raffles Place’s (ORP) retail podium is expected to open by April, and ORP could be divested to C-REIT by next year. Construction of the retail podium at OUE Downtown is underway and expected to be completed by 2016.

Here's more:

Management is actively exploring ways to extract value out of US Bank Tower, possibly converting part of the office space into apartments for sale. As for Twin Peaks, it is contemplating converting the unsold units into rental apartments with service when it obtains the Temporary Occupation Permit in 2015. These could subsequently be on-sold to OUE H-Trust.

OUE has a track record of sussing out interesting deals and has the balance sheet to do so. We maintain our BUY recommendation and TP of SGD2.83, pegged to a 35% discount to RNAV.  

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